State-certified crypto custodians such as Coinbase’s Custody Trust Co. and crypto bank Anchorage Digital may continue to offer custodial services in line with the Agency’s requirements.

“I’m glad to see the SEC recognizes Coinbase Custody Trust Co. as a qualified custodian, and after today’s SEC proposed rulemaking, we are confident that it will remain a qualified custodian. And we fully agree investors deserve to feel confident their assets are safe – as a reminder, our clients’ assets are segregated and secured.” tweeted Paul Grewal, Coinbase’s chief legal officer.

However, the proposal has received descent within SEC’s ranks. In a statement, Commissioner Mark Uyeda noted that Gensler’s approach to custody appeared to “mask a policy decision to block access to crypto as an asset class” adding that it deviated from the Commission’s long-standing position of neutrality on the merits of investments. 

Outspoken commissioner Hester Pierce “Crypto Mom”, also disapproved of various sections of the proposal, raising questions about the rule’s workability and breadth.